Required:1. Prepare an income statement showing the expected net operating income each year from the water slide.2. Compute the simple rate of return expected from the water slide. Based on this computation, would the water slide be constructed if Mr. Sharkey requires a simple rate of return of at least 14% on all investments?3. Compute the payback period for the water slide. If Mr. Sharkey accepts any project with a payback period of five years or less, would the water slide be constructed?
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